Malaysia

US tariff will not undermine Malaysia’s commodity competitiveness - Minister

“If you look at palm oil, Indonesia is the number one global producer and we’re number two. Even they are subject to the same 19 per cent tariff. So, it’s fair”

Updated 1 year ago · Published on 02 Aug 2025 1:30PM

US tariff will not undermine Malaysia’s commodity competitiveness - Minister
Johari says the rate remains competitive, particularly when compared with neighbouring ASEAN producers such as Indonesia - August 2, 2025

THE revised tariff rate of 19 per cent imposed by the United States on Malaysian imports will not harm the competitiveness of the nation’s commodities in global markets, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said.

Speaking to reporters after attending the Pasir Gudang UMNO Division Meeting on Saturday morning, Johari noted that the rate remains competitive, particularly when compared with neighbouring ASEAN producers such as Indonesia, which faces the same tariff despite being the world’s largest palm oil exporter.

“If you look at palm oil, Indonesia is the number one global producer and we’re number two. Even they are subject to the same 19 per cent tariff. So, it’s fair. This is still okay and competitive,” he said.

Johari was responding to questions about whether the newly imposed US tariff could adversely affect Malaysia’s commodity export sector.

The United States recently announced a revised countervailing duty on selected Malaysian imports, reducing it from an initial 25 per cent to 19 per cent, with effect from 1 August 2025.

The tariff, which came into force just after midnight on 1 August, includes a seven-day grace period for goods already in transit to mitigate immediate disruptions to the supply chain. - August 2, 2025

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